Bitcoin News Today: Hyperliquid Slides Below $38 as Bearish Momentum Intensifies

Hyperliquid (HYPE) has continued its downward trend, slipping below the $38 level, a key price threshold that analysts consider crucial for the asset's near-term direction [1]. This breakdown suggests the token may retest the $31 support level, a critical area first seen in late May. The failure to maintain a defense above $38 has intensified bearish sentiment, with the On-Balance Volume (OBV) indicator showing a consistent decline over the past two weeks, further reinforcing the selling pressure [2].

HYPE’s recent price action reflects broader market conditions, as the cryptocurrency sector has experienced heightened volatility. In the past 48 hours, over $15 billion in leveraged positions were liquidated as traders rushed to offload overbought positions, leading to a sharp drop in Open Interest for both Bitcoin (BTC) and Ethereum (ETH). This correction was accompanied by a brief negative shift in funding rates for both assets on August 1, signaling aggressive bearish positioning [3]. By the following day, however, funding rates stabilized and even turned slightly positive, indicating a potential rebalancing within the market.

Hyperliquid’s price movement has followed a similar pattern to these broader trends. After a short-lived rally in mid-July, HYPE has returned to a range that has characterized much of its price behavior since late May. Now trading near $37, the asset is under close observation to determine whether this level can act as support [2]. Analysts caution that further downward momentum may occur if there is no significant buying interest to defend the $31 level [1].

Market psychology has also shifted in recent weeks. The ETH/BTC ratio, which had surged to 0.0325 in July, has since corrected to 0.0307, reflecting a reassessment of risk appetite. Liquidation heatmaps for both BTC and ETH show large clusters of leveraged longs were wiped out around key resistance levels, including $117,000 for BTC and $3,600 for ETH [3]. These levels are likely to act as barriers as prices consolidate below them.

For Hyperliquid, the absence of heavy liquidation zones below the current price suggests the worst of the deleveraging may be behind it. However, a retest of $31 could serve as a pivotal moment—either confirming a deeper bearish trend or triggering a rebound if buyers emerge [1]. The path to $31 is unlikely to be a straightforward decline. The 4-hour chart shows a bullish divergence in the RSI, suggesting a potential bounce to the $39–$40 range, which short sellers should be cautious of [2].

Despite these potential rebounds, the overall trend remains bearish. Traders are advised to maintain a cautious stance as the market continues to consolidate. A shift in the broader macroeconomic landscape—such as potential U.S. Federal Reserve rate cuts—could provide a bullish catalyst for the asset and the wider market [4].

Source:

[1] AMBCrypto (https://ambcrypto.com/hyperliquid-slides-below-38-this-points-toward-31-retest/)

[2] BraveNewCoin (https://bravenewcoin.com/insights/hyperliquid-hype-price-prediction-momentum-cools-as-price-approaches-make-or-break-support)

[3] CipherBuzz (https://cipherbuzz.com/sitemap/)

[4] Coinalyze (https://ambcrypto.com/bitcoin-ethereum-ready-to-bounce-back-15b-liquidated-in-48-hours/)